Expression of Interest for Procurement of Solution for Risk Based Internal Audit (RBIA), Management Audit & Concurrent Audit System

Ref. No- HO/I&C/EOI-AUDIT/1/2014 Date : 5 th March 2014 Expression of Interest for Procurement of Solution for Risk Based Internal Audit (RBIA), Management Audit & Concurrent Audit System Oriental Bank of Commerce Department of Inspection & Control Corporate Office, Gurgaon Page 1 of 18

Preface 1. About Oriental Bank Of Commerce, a body constituted under Banking Companies Acquisition and Transfer of Undertakings Act 1980 has its Head Office at Plot No-5, Institutional area, Sector-32, Gurgaon-122001. It s Department of Inspection &Cotrol is located at1 st Floor of the Head office. Oriental Bank Of Commerce is hereinafter called Bank which term or expression unless excluded by or repugnant to the context or the meaning thereof, shall be deemed to include its successors and permitted assigns herein after called Oriental Bank Of Commerce or Bank or bank, issues this Request for Expression of Interest, hereinafter called EOI. Bank has crossed a business of Rs.3,16,069 Crores as on 31 st December, 2013. As on 31.12.2013 Bank has 2089 Branches and 34 Regional Offices The bank has an ATM network of 1829 ATMs across the country. Bank has national presence and representative offices in Dubai. Bank uses Information Technology in all spheres of its functioning by connecting all its Branches, Regional Offices, Regional Inspectorates and Head officeits WAN. Bank achieved 100% coverage of all its branches, extension counters and service branches under Finacle Core Banking Solution (CBS) by 31 st March 2008. Further details of Bank including profile, products and services are available in Bank s website at https://www.obcindia.co.in The EOI is issued for inviting proposals (Technical Bids) for Procurement of an Automated solution for Conducting various Audits like Risk Based Internal Audits, Concurrent Audit, IS Audit, Offsite Surveillance etc. and to meet the guidelines issued by Ministry of Finance and RBI in this regard, from eligible bidders satisfying the eligibility criteria set out in Section 6 of this document. This Solution shall be named as Audit Automation Software (AAS) in OBC. A vendor submitting the proposal in response to EOI for conducting various Audits like Risk Based Internal Audits, Concurrent Audit, Management Audit, etc. shall hereinafter be referred to as Bidder / Vendor interchangeably. The EOI document is neither an offer letter nor a legal contract, but an invitation for expression of interest. Page 2 of 18

No contractual obligation on behalf of Oriental Bank Of Commerce whatsoever shall arise from the EOI process unless and until a formal contract is signed and executed by duly authorized officers of Oriental Bank Of Commerce and the bidder. The Bank may modify any / all of the terms of this EOI and shall be entitled to invite Expression of Interest (EOI) from select eligible bidders. The EOI will provide the detailed scope of work. The time and last date for the receipt of expression of interest in response to the EOI is as given in the section Evaluation Schedule, later in the document. ABOUT ORIENTAL BANK OF COMMERCE 2. Bank Profile Oriental Bank of Commerce (http://www.obcindia.co.in) commenced its operations 1943 at Lahore. Bank was nationalized on 15th April 1980 and is presently a Public Sector Bank with the Government of India holding 58% of its capital. In 2004 Global Trust Bank was merged with Oriental Bank Of Commerce. Bank uses Information Technology in all spheres of its functioning. All its branches are inter-connected through its WAN and all branches are under Core Banking Solution. Bank aims to leverage the centralized solution to support its growing business, improve operational efficiency across the counters and multi-delivery channels, and enhance focus on customers. 3. Vision Statement To be a customer friendly premier Bank committed to enhancing stakeholder s value. 4. Mission Statement To provide quality, innovative services with state of art technology in line with customers expectations. To enhance employees professional skills and strengthen cohesiveness. To create wealth for customers and other stakeholders. Page 3 of 18

5. Objective of the EOI Bank has implemented Finacle Core Banking Solution and Finacle 7.0.25 Bank has been conducting various monitoring/audit activities like Risk Based Internal Audits, Concurrent audit, offsite surveillance etc. The internal Inspection process includes the Audit Plan, Conducting of Audit, Compliance of the observations, Review and closure of the Audit Reports. Bank proposes to automate this process for which the EOI is invited from the interested bidders to provide the required solution. The SOLUTION shall be able to extract and make available data/information for conduct of audit/inspection for the following offices/branches and automate the entire workflow for managing the audit/inspection process. CBS Branches Service Branches Training Centres ATM Centre Data Centre Currency Chests Regional Inspectorates Departments at Regional Offices/ Head Office / Corporate Office / Treasury and International Banking Division The Solution shall address the following types of audit/inspection Risk based Internal Audit (RBIA) Management Audit of Regional offices and Administrative offices Concurrent Audit of Branches The Bank should be able to create any type of Inspections with suitable checklists as per changing needs/requirements. The contents can be also made available in a database. Any changes in formats or checklist should be easily available in the software. Page 4 of 18

6. Pre requisites for the Software Solution The proposed solution shall be browser based where clients should be able to connect to the server through URL. The solution should facilitate workflow automation. The system should be able to generate letters/ e-mail for the communication of rating by Head Office to the branches. The system should store the ratings. It should be possible to store the ratings for earlier years also and generate various type of reports based on the ratings. The software solution should support assigning level of risks such as Extremely High, Very High, High, Medium, Low etc. These levels should be user definable. It should be possible to extract a branch wise list of irregularities. General Features of the software should have: Easy to use GUI based software. Highly scalable architecture. No impact on the performance of the source / destination system to which it is integrated. Parameterized review options to define set of rules as when required. Facility to define workflow as per the ruled defined by the bank. Provision to store all types of audit reports centrally for future check. Bank is presently using the following major solutions for its activities. The proposed solution should be capable of collecting the data from these environments and is easily map able to any other related solution Type of System CBS (Finacle 7.0.25 from Infosys Tech.) Debit Card Mgmt System FSS Tech. SW for Basel-II - IMACS CrisMac MIS Solution D2K Technologies Pvt Ltd Database Oracle 11g MS SQL Oracle 11g MS SQL 2008R2 Solution should also be capable to configure e-audit for any other solution Bank may procure under change process. The bidder shall provide detailed solution architecture showing all internal components of process workflow Page 5 of 18

Proposer has to give hardware/software requirements (Indicative) with Bill of quantities 7. Functional Requirements The Broad Functional requirements for the solution includes but not restricted to the following: The proposed solution should have the various audits configured in the system and provision should be available for Bank to create various Inspections with suitable checklists as per changing needs/requirements. The contents should be also made available in a database. Any changes in formats or checklist should be easily available in the software. The software solution should support end-to-end audit process including audit planning, testing and evaluating controls, reporting and follow-up. Based on the Audit Policy of the Bank, the system should be able to generate audit plan for the financial year. The solution should have provision to make changes in the plan. System should be able to compare the actual audits with the Audit Plan and point out deviations. The proposed solution should propose option to parameterize / change parameters any time on risk analyses methodology, marking pattern, application of risk weightages etc. on its own at any time. The solution should have option to generate multiple reports on different parameters with different formats. The solution should generate letters/ e-mail for the communication of rating by Head Office to the branches. The system should store the ratings. The solution should support assigning level of risks such as Critical, High, Medium, Low, No Impact etc. along with Risk Matrices for the unit of Audit. These levels should be user definable. It should be possible to extract a branch wise list of irregularities of a given level of risk. The solution should store the status regarding various Inspection reports such as open, closed, partial rectification, closed with open items. Bank should be able to define such parameters. The solution should give multiple option for view / print / save in excel / word / pdf format, various reports generated. The solution should give reports on overall risk of individual/ group of branches and Bank as a whole. The proposed solution should be able to store the ratings for earlier years (at least 3 years) also and generate various type of reports based on the ratings. Page 6 of 18

The solution should have facility like User Management. The user-management should be available to Administrator(s), which may be in HO or in HO and Other Offices like Regional Inspectorates and Regional Offices etc. The solution should provide option to create users with different levels with different powers. 8. Eligibility Criteria The bidder should not be an individual / proprietary / HUF etc. The bidder may be a government organization / Public Sector unit / Partnership firm / Limited Company / Private Limited Company having its Registered Office in India. Relevant documents of registration should be submitted as part of the proposal. Bidder should be familiar with all security measures at coding level. List of such measures and the standards adopted may be attached. The bidder must warrant that there are no legal actions being taken against it for any cause in any legal jurisdiction. The applicant company shall not be under declaration of ineligibility for corrupt and fraudulent practices issued by the Govt. of India / State Govt. / Regulatory Agencies Eligibility criteria details should be provided as per Annexure A and B The Bidder should have a live reference site. If there is no live site, the Bidder should demonstrate the capability as a Proof of Concept duly taking all integration, consistency, reliability and scalability aspects. The bidder should either be an OEM for the proposed software or a System Integrator in which case OEM has to authorize the System Integrator to offer the software and deal with Bank. The OEM of the software (Software developer) have thorough understanding of banking system, audit system and the guidelines issued by regulatory authorities like MOF, RBI etc. The OEM or SI has a team of professionals having previous working experience in similar projects and profiles of such key professionals have to be furnished as part of Technical Bid submission Bidder should be a professional company / firm having experience / expertise in the subject matter. Should be owner or authorized reseller / partner of the proposed solution and must be in a position to provide support / upgradation during the period of contract with the Bank. In case the bidder is a premium partner of the solution and / or authorized reseller or system integrator of the solution offered, a letter of authorization to this effect from Owner or Principal of the solution must be furnished. Proposals offered by non-compliant bidders will not be considered. Page 7 of 18

9. Evaluation of EOI 9.1 Evaluation Process The evaluation process for Audit Automation Software (AAS) at Oriental Bank Of Commerce will be a two-step process. The desktop evaluation of the EOI will be conducted first. The proposals will be evaluated based on the eligibility criteria as mentioned above and such short-listed bidders have to providepresentation/demonstration of their proposed solutionat the Bank s Corporate Office at Gurgaon at their own cost duly mapping their solution with the points stated above as well ason the followings:- Functional specifications of the software Technical Architecture of the solution Experience in implementing the solution in other Bank Background of the bidder Implementation methodology System or any equipments software etc., needed for the product demo have to be brought in by the vendor only at their cost. On the basis of Bidder s Qualification Criteria, product demonstration, its compatibility, bidder s capability to meet the Bank s stipulated terms and conditions, experience in earlier implementation of e-audits / e-inspection Tool in banks and other leading institutions, a list of short listed bidders will be prepared for the purpose of issuing Request for Proposal (RFP) and for further process. The short-listed bidders would be advised to submit the final technical and commercial offers as per terms of the RFP. The details of technical and commercial evaluation criteria shall be provided as a part of the RFP. The bidders need not provide any commercial proposal along with the response to this EOI. 9.2 Bid Submissions General Terms of Bid Submission The offers should be made strictly as per the formats enclosed. The Bidder should bear all the costs associated with the preparation and submission of their bid and Bank will in no case be responsible or liable for these Page 8 of 18

costs, regardless of the conduct or outcome of the bidding process. Each bidder should submit not more than one expression of interest. Bids submitted after the stipulated time will not be accepted. No bid shall be rejected at bid opening, except for late bids. Two copies of the bid are to be submitted, one in original and the other in copy. The Bidder shall also provide a softcopy of the bid in MS-Word formats on a CD duly super scribed with EOI s reference and Bidder s name. The Bidder needs to provide an undertaking in the format Annexure - 3 on the veracity of soft copy submitted along with the Hard copy. The bid should be signed by the Bidder or any person duly authorized to bind the bidder to the contract. The signatory should give a declaration and through authenticated documentary evidence establish that the person is empowered to sign the expression of interest documents and bind the bidder. All pages of the expression of interest documents except brochures if any are to be signed by the authorized signatory. The bid should contain no interlineations, erasures or over-writings except as necessary to correct errors made by the Bidder. In such cases, the person/s signing the bid should initial such corrections. The offers submitted to Bank should not bear any corrections, alterations, over writings and additions in hand writing. The Bidder is expected to examine all instructions, forms, terms and conditions and technical specifications in the Bidding Documents. Failure to furnish all information required by the Bidding Documents or submission of a bid not substantially responsive to the Bidding Documents in every respect will be at the Bidder s risk and may result in rejection of the bid. No columns of the expression of interest should be left blank. Offers with insufficient information and Offers which do not strictly comply with the stipulations given above, are liable for rejection. 8.1.9 Bank may accept or reject, in full or in part, any or all the offers, without assigning any reason whatsoever. Bank may at its discretion abandon the process of the selection of vendor for Fraud Prevention/Monitoring Solution anytime before notification of award. The expressions of interest will be opened in the presence of authorized representatives of the bidders. However, the representative of the bidder has to produce an authorization letter from the bidder to represent them at the time of opening of EOI. Only two representatives will be allowed to represent any bidder. In case the bidder s representative does not present at the time of opening of bids, the quotations/bids will still be opened at the scheduled time at the sole discretion of the Bank. Page 9 of 18

All responses should be in English language. All responses by the Bidders to this Request for Expression of Interest document shall be binding on such Bidders for a period of 180 days from the date of opening the EOI. Bidders are advised to attach a letter from an authorized signatory attesting the veracity of the information provided in the response. The original and all copies of bids shall be typed or printed in a clear typeface. Copies may be good quality photocopies of the original. An accompanying letter is required, signed by an authorized signatory of the Bidder, committing the bidder to the contents of the original response. Bank will not be responsible for any delay due to postal service or any other means. Bidder has to submit integrity statements in writing about the application being free of malware, free of any obvious bugs, and free of any covert channels in the code (of the version of the application being delivered as well as any subsequent versions/ modifications done. 9.3 Sealing and Marking of Bids The offer should be submitted in sealed covers containing the response to the EOI super scribed with Audit Automation Software (AAS) There shall be No commercial bid to be provided as a response to the EOI. 9.4 Amendments to EOI Amendments to the EOI Document may be issued by the Bank for any reason, whether at its own initiative or in response to a clarification requested by a prospective bidder, prior to the deadline for the submission of bids. The amendments will be posted on Bank s web site and will be binding on all the bidders. From the date of issue, amendments to Terms and Conditions shall be deemed to form an integral part of the EOI. Further, in order to provide, prospective Bidders, reasonable time to take the amendment into account in preparing their bid, the Bank may, at its discretion extend the deadline for submission of bids. 10 Confidentiality Bidder agrees that all information gathered from the Bank including oral enquires, letters, documents, emails, presentations, interactions, technical documentation, discussions with Bank s service providers and documents gathered from Bank s service providers etc. related to the Bank s business and other information are to be treated as confidential information of the Bank. Page 10 of 18

The Bank would insist on signing a Non-Disclosure Agreement with the bidders who further qualify for the RFP stage. Unauthorized disclosure of any such confidential information will amount to breach of contractual terms and in such cases Bank may pre-maturely terminate the contract and initiate any legal action as deemed fit. 11 Other Terms and Conditions This EOI document is the property of the Bank and this can not be copied or used in any other manner except for the purpose of responding to this expression of interest notice or without written permission from the Bank. All the documents submitted along with bids shall also become the property of the Bank and retained by the Bank unless otherwise specifically mentioned. 8.5.3 The bidder should mention whether he is having any contractual obligation presently with the Bank, its status and any conflict of interest has arisen in such contractual obligation. Bank reserves its right to add/modify/delete any other activities which are relevant to the Bank s requirement during the course of technical presentation and product demonstration / Proof of Concept. 12 Contact Details The contact details for submitting the proposal is as follows: Primary Address: General Manager, Oriental Bank Of Commerce,Inspection & Control Department, 1 st Floor, Plot No-5, Institutional area, Sector-32, Gurgaon-122001, India Fax: 0124-4126164 Email: insp@obc.co.in Alternate Address: Dy General Manager, Oriental Bank Of Commerce Inspection & Control Department,, 1 st Floor, Plot No-5, Institutional area, Sector-32, Gurgaon-122001, India Fax: 0124-4126164 Email: insp@obc.co.in Page 11 of 18

13 Evaluation Schedule The proposed evaluation schedule is tabulated below. However, the Bank, at its discretion can change the schedule assigning no specific reasons for the same. Table of Evaluation Schedule Activity Scheduled Dates EOI Reference HO/I&C/EOI-AUDIT/1/2014 Date of issue of EOI 5 th March 2014 Last date of submitting clarification/confirming participation in EOI Pre-Bid EOI Conference for Clarification required by the Bidder(s) 12 th March, 2014 11:30 a.m. on 13 th March, 2014 Venue: Oriental Bank Of Commerce, Inspection & Control Deptt. 1 st Floor, Plot No-5, Institutional area, Sector-32, Gurgaon-122001 Last Date for receipt of EOI response 3.00 p.m. on 26 th March, 2014 Venue: Oriental Bank Of Commerce, Inspection & Control Deptt. 1 st Floor, Plot No-5, Institutional area, Sector-32, Gurgaon-122001 EOI Opening 11.30 a.m. on 27 th March, 2014 Venue: Oriental Bank Of Commerce, Inspection & Control Deptt., 1 st Floor, Plot No-5, Institutional area, Sector-32, Gurgaon-122001 The Bank will issue an invitation for EOI to all prospective Vendors through advertisement in newspapers and a notice on the official website of the Bank: https://www.obcindia.co.in All interested Vendors will send an e-mail to insp@obc.co.in to confirm that they are participating in the EOI process. The e-mail should contain following information: Name of Company, Contact Person, E-Mail address, Telephone Numbers, Fax Numbers and Mobile Number The EOI response will be submitted in sealed envelope and will include the following: o Duly filled & signed EOI document along with relevant supporting document o Softcopy of all relevant documents in form of CD o Non-refundable amount of ` 10,000/- by Demand Draft in favour of Oriental Bank of Commerce payable at Gurgaon. This amount shall not be adjustable against security/ bid amount etc. at the time of RFP. Page 12 of 18

The Bank will evaluate the EOI responses received and issue the RFP/limited tender. Only those vendors who qualify Eligibility Criteria of the EOI will be eligible to participate in RFP/limited tender. Page 13 of 18

Annexure - 1 Bidder Profile Description Details The registered name of the Bidder Bidder s registered address Bidder s Address for Correspondence Address: STD- Phone: e-mail Id: Contact name of the official who can commit on the contractual terms and the name of an alternate official who may be contacted in the absence of the former FAX No: Primary Contact: Name: Designation: STD- Phone No: Mobile Phone : e-mail ID : Alternate Contact: Name : Designation: STD- Phone No: Mobile Phone : e-mail ID : Contact addresses if different from above Business Structure Constitution Names of Directors Organization Structure Page 14 of 18

Description Details Core Business of Bidder Bidder s Organization has been in existence since (date) Bidder is engaged in implementing Automated solution for e- Audits/Inspection since (month & year) Whether implementing the Automated solution for e- Audits/Inspection is a core function of the bidder? Details of assignments where the bidder has delivered Automated solution for e- Audits/Inspection in Banking for PSU Net Profit of the Organization for last 3 years. (Please provide audited results.) 2010-2011 ` Lacs 2011-2012 ` Lacs 2012-2013 ` Lacs Audited Balance-Sheet and Profit & Loss Account for last 3 years enclosed : Cash Profit of the Organization for last 3 years. (Please provide audited results. 2010-2011 ` Lacs 2011-2012 ` Lacs 2012-2013 ` Lacs Audited Balance-Sheet and Profit & Loss Account for last 3 years enclosed : Bidders warrants financial solvency i.e., ability to meet all the debts as and when they fall due Bidder to confirm that that the firm is not been blacklisted by any Government / Government agency / Banks / Financial Institutions in India in the past Total Number of employees in India, out of which how many are working on Automated solution for e- Page 15 of 18

Audits/Inspection Major support Centre s with locations in India Bidder has a support office/centre at DELHI/ GURGAON Authorized Signatory with Seal Date: Place: Page 16 of 18

Annexure - 2 Credentials (Give details of at least 3 major clients for Automated solution for e- Audits/Inspection) Description Details Name of the client Total Number of Employees of client covered for the Solution Total Number of Concurrent Users of client for Solution Project Name Project Location Address of Client Client contact details (names and contact numbers) Project Start Date Project Go Live Date Duration of project in years Current Status of the Project Project End Date Brief on the Scope / coverage: No of locations where the said solution is implemented Date: Place: Authorized Signatory with Seal Page 17 of 18

Confirmation of Soft Copy Annexure - 3 To The General Manager (I&C) Oriental Bank of Commerce Dept. of Information Technology, 1st Floor, Plot No-5, Institutional area, Sector-32, Gurgaon-122001 Dear Sir, Sub: EOI Implementing Audit Automation Software (AAS) Further to our proposal dated, in response to the Request for Expression of Interest (Bank s Ref No. HO/RMD/EOI-AUDIT/35/2014 Dt.05 th March 2014 hereinafter referred to as EOI ) issued by Oriental Bank of Commerce ( Bank ) we hereby covenant, warrant and confirm as follows: The soft-copies of the proposal submitted by us in response to the EOI and the related addendums and other documents including the changes made to the original tender documents issued by the Bank, conform to and are identical with the hard-copies of aforesaid proposal submitted by us, in all respects. Yours faithfully, Authorized Signatory Designation Bidder s corporate name Page 18 of 18